UAE's Aldar to refinance $490m loans with banks

Out of Aldar’s total debt of $1.6bn (AED6bn), bank loans fund $871m (AED3.2bn) – $490m (AED1.8bn) of which is now being refinanced, its CEO has said

Aldar's net profit reached $179m (AED657m) in the three months to 30 June, 2016.
Aldar's net profit reached $179m (AED657m) in the three months to 30 June, 2016.

Abu Dhabi-based developer, Aldar Properties, has agreed to refinance $490m (AED1.8bn) loan with longer maturities, its CEO said.

Aldar also reported a 9.7% rise in net profits in the second quarter of 2016. 

The net profit of $179m (AED657m) in the three months to 30 June marks the eighth successive quarter of rising earnings for the group.

Out of Aldar’s total debt of $1.6bn (AED6bn), bank loans fund $871m (AED3.2bn) – $490m (AED1.8bn) of which is now being refinanced, Greg Fewer told Reuters.

"This achieves a major objective for us this year to extend the duration of our loans and at attractive terms for five, seven and ten years on a bullet basis," he said.

“Under a bullet loan, the amount borrowed is repaid at the end of the term.”

The $490m (AED1.8bn) of loans being refinanced were to mature at different points between December 2016 and 2018, according to Reuters.

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